On Tuesday, July 15th, Microsoft hosted its highly anticipated Partner Webinar, unveiling a wave of changes that set the stage for a transformative FY26. This year marks one of the most significant shifts in the Microsoft Ecosystem since the turn of the century—with AI front and center. From new solution areas and partner designations to enhanced incentives and skilling initiatives, the announcements signal a dynamic new chapter for the partner community.
Let’s walk you through all the key changes:
FY26 Strategic Solution Areas
Microsoft has defined three new strategic areas that will shape its focus moving forward:
1- AI Business Solutions
Combining Modern Work and Business Applications
- Copilots on every device across every role
- M365 and D365 core execution
2- Cloud & AI Platforms
(Copilot Studio, Microsoft Azure)
- Frontier AI Solutions
- Migrations and Modernization
3. Security
- Security as the cyber foundation
New Partner Solution Designations
Microsoft is introducing several new designations that allow partners to demonstrate expertise and differentiate themselves:
- Copilot Specialization: For partners delivering in-depth Copilot implementations
- Sovereign Cloud: Focused on data residency & compliance
- Support Designation: Around support services that partners can offer
- Device Designations: Allows OEMs focused on Copilot+ PCs and hybrid devices to stand out
Incentives & Funding Increases
Major updates to the CSP channel will see a boost in partner support:
- Microsoft has increased the funding and incentives through the CSP Channel
- 70% of the overall funding mechanisms will now be available for the CSP motion
More details to come on this topic.
Skilling: Elevating Partner Capabilities
Microsoft remains committed to growing a skilled ecosystem:
- Continued focus on skilled partners in the Ecosystem: here
CSP Program Updates
More flexibility and tools are now available to streamline partner operations:
- New 3-Year Subscription Terms for E3, E5, M365 E5 Security and Compliance Mini-bundles, and Teams Enterprise (Launched June 1, 2025) here
- EA to CSP Migration Renewal Tool in Partner Center here
What’s Next?
While the Partner Webinar provided high-level insight into FY26’s direction, many details are still under wraps. Microsoft is expected to roll out deeper updates in the coming weeks and months.
Stay tuned—FY26 is already shaping up to be a pivotal year for partners and innovation alike.